3. You are given the following information:Use the Variance Covariance matrix in the Excel file: Efficient Portfolios Data.Construct a model to determine the following:

a.Standard deviations for the individual assets.

b. Calculate an envelope portfolio assuming the risk-free rate is 6%.

c.Calculate an envelope portfolio assuming the risk-free rate is 12%.

d. Compute the mean and variance for each of these envelope portfolios.

e. Compute the covariance between these two envelope portfolios.

f.Create a one-way data table using EXCELs Data Table feature that determines the different means and standard deviations for combinations of Envelope Portfolio 1 and Envelope Portfolio 2 by varying the proportion of Portfolio 1.

g.Graph the combinations of the portfolios from the one-way data table and add the individual asset means and standard deviations to the graph.

h. Provide a title on the graph and label the axes of the graph.

i.Could the portfolio combinations be on the efficient frontier? Why or why not?

*PLEASE SHOW ALL FORMULAS USED IN EXCEL*

E F G H NM A B D 1 Efficient Portfolios Data 2 2 3 Variance-Covariance Matrix 4 5 Dell INTC MSFT 6 Dell 0.0070 0.0011 0.0004 7 INTC 0.0011 0.0080 -0.0001 8 MSFT 0.0004 -0.0001 0.0064 9 Means 2.0000% 4.0000% 6.0000% 20 11 E F G H NM A B D 1 Efficient Portfolios Data 2 2 3 Variance-Covariance Matrix 4 5 Dell INTC MSFT 6 Dell 0.0070 0.0011 0.0004 7 INTC 0.0011 0.0080 -0.0001 8 MSFT 0.0004 -0.0001 0.0064 9 Means 2.0000% 4.0000% 6.0000% 20 11